ATO amends ABN application process

The ATO has announced it has made changes to the ABN application process to help safeguard its integrity.

Maja Garaca Djurdjevic

May 23, 2019

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The Australian Taxation Office (ATO) has made changes to its Australian business number (ABN) application process to ensure only those who are entitled to an ABN actually receive one.

The changes are aimed to identifying people going through the application process multiple times and help people understand their obligations where there may be some doubt.

"The changes will help your business clients understand what it means to have an ABN and run their own business, as opposed to being an employee," the ATO said.

"You can also help your clients understand their ABN obligations, as they may talk to you about their ABN entitlement and application," a spokesperson for the office said.

Recently, the government announced it will be targeting the misuse of the ABN system by requiring ABN holders to lodge their tax returns and confirm their details annually.

From 1 July 2021, ABN holders with an income tax return obligation will be required to lodge their income tax return. From 1 July 2022, ABN holders will be required to confirm the accuracy of their details on the Australian Business Register on an annual basis.

Currently, anyone with an ABN can continue to hold one even if they are not up to date with tax obligations.